Quick answer: A commercial umbrella or excess liability policy adds limits above your general liability, commercial auto and employer’s liability, typically $1 million to $10 million or more. Contracts that require $2M–$5M in total limits are usually met by pairing a $1M general liability policy with an excess or umbrella layer.
Reviewed by Jason Ayala, licensed agent (CA #0G67764) · Updated October 2026
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Umbrella vs. excess liability
| Umbrella | Excess | |
|---|---|---|
| What it does | Adds limits over several underlying policies and may fill some gaps | Adds limits that follow the terms of the underlying policy |
| Common use | Businesses with GL, auto and employer’s liability | Meeting a specific contract limit on top of GL |
Who usually needs higher limits
- Contractors and welders on industrial or GC contracts requiring $2M–$5M
- Aviation vendors where airports require $5M–$10M
- Trucking companies and fleets
- Apartment and rental property owners with several properties
- Product brands whose retailers require higher limits
What we need to quote
Your current general liability, auto and workers comp declarations, the limit your contract requires, and the insurance section of the contract.
How we place it
- Read the contract. We confirm the total limits, follow-form and additional insured wording required.
- Check the underlying policies. The umbrella or excess must sit on top of the right primary limits.
- Shop excess markets. Several carriers, including surplus lines, for $1M to $10M layers.
- Issue certificates. Showing the total limits your customer asked for.
Real client results
Frequently asked questions
Does an umbrella cover workers comp?
It can sit above employer’s liability (Part Two of a workers comp policy), not the statutory workers comp benefits.
Do contracts require umbrella coverage?
Many GC, industrial, airport and property contracts require total limits above $1M, met with an umbrella or excess policy.
What is the difference between umbrella and excess liability?
Excess follows the underlying policy’s terms; an umbrella may also cover some claims the underlying policy doesn’t.